Pakistan, chasing a seemingly modest 237 to win, slumped to 162 for seven.
Sarfraz shared the nerve-racking last 75-run partnership with Mohammad Amir, who hung on for 28 not out.
But with 300 now a par score in ODI cricket, Sri Lanka knew it would take something special in the field to deny Pakistan a likely semi-final against tournament hosts England in Cardiff on Wednesday.
Pakistan edged past Sri Lanka in an absolute humdinger of a clash at Cardiff to set a semi-final clash with England, which has been the form team in the tournament so far and look clear favourites to lift the trophy.
Among the quartet to fall for Sri Lanka included their skipper Angelo Mathews for 39 and opener Niroshan Dickwella for 73.
Amir and Junaid took two wickets each in the space of 3.2 overs as Sri Lanka lost four wickets for six runs.
The Pakistan bowling attack comprising pacers Junaid Khan, Mohammad Amir, Fahim Ashraf, Hasan Ali and their lone spinner Imad Wasim will look to test the strong England batting line-up as well.
Victory should have come more easily, especially after Pakistan's openers had put on 74 by the 12th over.
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Pakistan have now beaten Sri Lanka in 10 of the 11 matches they've played against one another in ICC One-Day International tournaments, and it's little wonder when the latter crumbles such as they did on Monday.
It is also worth mentioning here that only 10800 fans were present at the stadium during Pakistan-Sri Lanka last group match, which had become a virtual quarter-final for both the teams.
Malinga, 33, has restricted his displays for the national team in recent years in a bid to extend his career at the highest level, but the expert death bowler is fast running out of opportunities to deploy his trademark sling-style action on the big stage. I think it's a great win today, and credit goes to the bowlers today.
Gunaratne holed out, caught just inside the mid-wicket boundary by Zaman off Hasan Ali, who had bowled Lakmal, for 27, before Pradeep gave Ashraf an easy caught and bowled as Sri Lanka's innings ended two balls into the 50th over. The other final four contest is between India and Bangladesh on Thursday at Edgbaston.
London, June13:The Champions Trophy ongoing event match yesterday was played between Srilanka and Pakistan at the Sophia Gardens.
In what turned out to be a brilliant all-round match for wicket-keeper Sarfraz, he held a superb low one-handed catch to dismiss Dickwella after the batsman got an inside edge to Amir.
Dickwella's dismissal dented Sri Lanka badly and they struggled to put up a good total on the board.
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